USD Consolidates Gains

USD gains have consolidated through the afternoon session. The DXY remains above the 109.80 level. Overall moves have been modest though, with a large number of central banks meeting this, which may have dampened activity today (along with Japan's public holiday). Note also UK markets are out due to the Queen's funeral.

• Cross asset signals were positive for the USD. US equity futures couldn't sustain a positive footing (-0.20% Eminis), while regional equities remained in the red. There has been no cash UST trading, but UST futures are generally lower.
• EUR/USD is sub parity but not too far away from the level (last 0.9995). USD/JPY dipped to 142.65 in early trade, but rebounded back to 143.15/20.
• AUD/USD is holding above 0.6700 for now. Slightly outperforming the rest of G10 FX. Higher iron ore and copper prices are helping, although we are away from best levels for both metals.
• NZD/IUSD is around 0.5975 (-0.25% off closing levels last week). GBP/USD is 1.1400/05, -0.15% for the session.
• Looking ahead, speeches from the ECB’s de Guindos, De Cos, and Villeroy are due, while U.S. homebuilder sentiment will headline the NY data docket.
• Focus for the week will remain centred on a host of central bank policy decisions, with announcements from the Fed (Wed), BOE (Thu), and BOJ (Thu) due.